The Benefits of Tangible Commodities When Buying Real Estate in Hawaii
Aloha Pumehana! I was showing a Los Angeles family coffee farms on the Big Island last week and learned that their background in financing was stimulating them to move their cash assets into real estate because it was a “tangible commodity.”
Since cash seems to be losing its value at this time, a safe option is to buy a property with mature, producing crops, and as much land as you can afford in a fertile place – so you can have a safe sustainable place to live with potential tangible crops to sell or trade when the financial market crumbles.
Coffee as a Tangible Commodity
This coffee is from a property we saw in Wood Valley on the outskirts of the Pahala – near the area where the Dalai Lama stays when he comes to visit the Big Island; a very peaceful place where the land is fertile, green, alive, and well.
This area is rich in soil as it is untouched by the lava – located in Lava Zone 6 on the southeast side of island. This property is also an active flower farm where they grow beautiful flowers, which they sell as bouquets and also to local florists.
Ornamental & Pharmaceutical Agriculture as a Tangible Commodity
Looking for a property that has a thriving business, or crops on it adds value to a real estate purchase. Even though the current owners of this fertile Wood Valley property will be taking their flower business with them, the outbuildings and existing raised garden beds will be left as-is, and have value for future business opportunities. Lots of potential for a thriving plant nursery, cut flowers, pharmaceutical agriculture, and lots of room for citrus, vanilla, cacao, and anything that can prosper at 2,200 ft. elevation!
Water Access as a Tangible Commodity
Having access to water in Hawaii is a very valuable commodity, especially when you own agricultural lands. Any property that has its own water holding tanks, private wells, water reservoirs, catchment tanks, and water filtration systems (for converting catchment water into potable water for drinking and cooking) has a very high value, and can be an asset to your multi-use options.
Also, properties that have a fire hydrant within a 5-mile radius of the property have potentially better insurance options…something to research when looking at all the options according to your personal and business needs.
Real Property Taxes may also vary according to the crops you have permanently growing on the property. To learn more, call the County Real Property Tax Assessor and ask for the Agricultural Use Value of your present or future crops.
When you are ready to find your piece of paradise in Hawaii, give me a call! I would be happy to research any property and its potential to your business and personal needs.
Blessings & Aloha~
Claire K. Bajo, RS, SRES